Monday, January 18, 2010

Many opportunities in 2010

As we start a new year and a new decade, there are so many opportunities. Not the ones your advisors will see, and not the ones you might come to expect as the norm. This next decade as in the last will not fare to well for the buy and hold. This does not mean that you will nedd to day trade. Far from it. In fact you would not need to review your trades more than once a week. The trends will be very strong. All we will need to do is know where we are at in the trend and trade accordingly.

Treasuries! What a no brainer for these! With 30 years of falling interest rates to the lowest in history, it does not take rocket science to see where rates have to go. UP!!

The problem will be that it is going to be a wild ride. As equities drop and rally, so too will long term bonds. You can either buy a rydex inverse bond fund and let it go, or you can try to use options for larger gains.

This will be where I will spend my dollars. Using put stategies on TLT.

Another no brainer factor here is the massive amounts of debt the gov is piling up. The only way to pay this down is with more dollars. Devaluing the dollar is the only way to keep this charade going. In order to do this, investor will demand more for the treasuries they are buying.

So there you have it for the next 10 years. "SELL LONG TERM TREASURIES!" or put option strategies on bonds

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